Market Intelligence Firm Warns of Building Leverage in Ethereum, Creating Volatility Risk for Bulls
A market intelligence firm is cautioning traders about the increasing leverage in Ethereum (ETH), which could pose a risk of volatility for bullish investors. Altcoin Vector, a crypto analytics platform, highlighted the potential danger of leverage building up within the second-largest digital asset by market cap, despite ETH’s recent price surge being supported by the spot market and exchange-traded funds (ETFs).
In a recent thread on the social media platform X, Altcoin Vector pointed out that the open interest in ETH futures has hit a new all-time high, doubling since May. While the price of Ethereum has been on the rise, fueled by ETF inflows and spot market momentum, the firm warned that the historic levels of open interest could be a double-edged sword, as it indicates increased leverage in the market.
Currently, Ethereum is trading at $3,771, showing a slight increase for the day.
Solana’s SUI Showing Strong Momentum, Set to Outperform Bitcoin
Turning its attention to Solana’s challenger, Sui (SUI), Altcoin Vector suggests that the layer-1 chain is gaining momentum that could potentially outperform Bitcoin on its way to reaching a $5 price target and beyond. The firm highlighted SUI’s high-beta nature, strong trader interest, and recent 10% price surge in a 24-hour period as indicators of its growing momentum.
At the time of writing, SUI is trading at $4.22, reflecting a 5.2% increase for the day.
Bitcoin’s Dip Seen as Healthy Correction by Altcoin Vector
Concluding its analysis with the top crypto asset by market cap, Altcoin Vector reassured traders that Bitcoin’s recent dip should not be a cause for concern. The firm characterized the drop as a healthy correction, maintaining that Bitcoin’s overall market structure remains bullish. While acknowledging a slight cooling in momentum, Altcoin Vector believes that BTC is still holding above key support levels, with a potential test of $112,500 looming.
Bitcoin is currently trading at $119,503, showing a slight increase over the last 24 hours.
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